Canada’s tax system is based on self-assessment. This means that individuals voluntarily complete an income tax return to report their annual income and claim all deductions or credits that apply to their situation. In this way, you are able to calculate the amount owing or the refund to be received.
Each year, the CRA conducts a number of review activities that promote awareness of and compliance with the laws it administers. Review programs promote taxpayer education by identifying common areas of misunderstanding. Analysis of results and feedback from taxpayers are used to review and improve the guides and forms that CRA provides to the public. For a list of errors most frequently made by taxpayers on their income tax return, see Common adjustments.
And remember, it is a review – does not represent a tax audit.